FAO warns of global agrifood shock
The UN Food and Agriculture Organization (FAO) has warned that a prolonged closure of the Strait of Hormuz could trigger a structural agrifood shock, potentially escalating into a severe global food price crisis within six to twelve months, Qazinform News Agency cites WAM.
To this end, FAO recommends establishing alternative trade routes, managing export restrictions, safeguarding humanitarian aid flows, and building strategic reserves to absorb rising transport costs.
The FAO stressed that the window for proactive intervention is narrowing, as current decisions by farmers and governments on fertiliser use, imports, and financing will determine whether a major crisis unfolds.
The shock is expected to ripple through consecutive phases affecting energy, fertilisers, seeds, crop yields, and commodity prices, culminating in food inflation.
The situation could be worsened by the onset of El Niño, expected to bring droughts and disrupt rainfall and temperature patterns across multiple regions.
Earlier reports noted, global food commodity prices increased in April for the third consecutive month, driven by higher energy costs and disruptions linked to the conflict in the Middle East.